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Old 03-17-2008, 11:39 AM
cowpip cowpip is offline
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Re: Wide Spreads in Many Pairs Today

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Is it me or am I seeing this like in Tokyo sessions? I know the rates have been tinkered with late last night but it doesn't move slower than the normal quick move. I see slow movement with wide spreads. GBPJPY are at least 5-10 pips spreads, even GBPUSD and EURJPY I see is 4!!! Does that mean there's low volume or just lots of volume being thrown at the market???
Hi Torero. I don't know if you recall, but during the August crunch, eur/jpy spreads increased quite substantially and held throughout the day. It was a result of increased risk. I think the same thing is happening now. The Bear Stearns death and abnormal Fed actions have increased uncertainty and very likely reduced liquidity, requiring brokers to increase spreads.

Right now, Oanda is showing eur/jpy spreads of 3, which typically aren't seen except during the Asian session.

Entries in these conditions require careful placement to be sure.

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